Profitability of smallholder private tree plantations in Talacogon, Agusan Del Sur, Philippines

Issue Date

10-2015

Abstract

This study sought to assess the financial options for smallholder private tree plantation management in Talacogon, Agusan Del Sur, Caraga Region, Philippines. Profitability analysis was conducted to evaluate market options by which farmers can enhance their profit from establishing tree plantations. The study used a purposive survey, which was complemented by secondary data review to assess the extent of private sector involvement in forestry activities. Simple descriptive statistics and time series analysis were performed. Tree farming in private lands is a thriving business among local people in Talacogon. There were 192 registered tree farmers in the municipality holding private tree plantation ownership certificate (PTPOC) with a total land area of 914 ha in 2010. This business gives a net income of USD 4,545 to 5,681 to farmers, and an average yield of 220 m 3 ha –1 over a ten–year rotation. The outlook for engaging in tree plantations is bright in the light of a number of government restrictions in harvesting timber from natural forests. These restrictions create a situation of timber scarcity that boosts confidence in establishing tree plantation in private lands. Results showed that farmers could potentially get higher income in the processing of timber to intermediate and final products. There is also potential of utilizing logging wastes (e.g. pulp and paper production, wood manufactured articles, etc.), estimated to be around 25–40% of gross volume produced. Thus to further improve the tree farm industry situation, tree farmers suggested that government must provide financial assistance, encourage investment in strategic wood processing plants in the area, take measures to stabilize tree price, work for the reduction of tax on land and harvested products, and lastly, improve and properly maintain farm to market roads in the municipality.

Source or Periodical Title

E&D Ecosystems and Development Journal

ISSN

2012-3612

Volume

5

Issue

3

Page

3-11

Document Type

Article

College

College of Forestry and Natural Resources (CFNR)

Physical Description

illustrations; charts; tables; references

Language

English

Subject

Tree planting; Profitability

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